ITO WD-1(5), JAMSHEDPUR vs. SHRI ASHOK AGARWAL, JAMSHEDPUR

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ITA 299/RAN/2016Status: DisposedITAT Ranchi28 February 2018AY 2009-102 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal, following the jurisdictional High Court's decision in Ajay Prakash Verma vs. ITO, held that interest under sections 234A and 234B can only be levied on the income declared by the assessee in the return of income, not on the assessed income.

What were the facts?

The revenue appealed against the CIT(Appeals) order concerning the assessment year 2009-10. The core issue was whether interest under sections 234A and 234B should be levied on the income disclosed by the assessee or the assessed income determined by the Assessing Officer.

What were the issues?

The primary issue was the correct basis for calculating interest under sections 234A and 234B: disclosed income versus assessed income. The Tribunal had to determine the applicability of a jurisdictional High Court ruling on this matter.

Which sections of the Income-tax Act were involved?

Section 234A,Section 234B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, RANCHI BENCH (SMC

Before: Hon’ble Shri J. Sudhakar Reddy]

IN THE INCOME TAX APPELLATE TRIBUNAL RANCHI BENCH (SMC), RANCHI [Before Hon’ble Shri J. Sudhakar Reddy] I.T.A. No. 299/Ran/2016 Assessment Year : 2009-10 Income Tax Officer...........................................................................................................Appellant Ward No. 1(5), 47, C.H. Area, Jamshedpur – 831 001. Shri Ashok Agarwal...................…………………………………….....................................Respondent Mahato Para Road,Jugsalai, Jamshedpur – 831 001. [PAN: AKFPA 5902 J] Appearances by: Shri P.K. Mondal, JCIT appearing on behalf of the Revenue. Shri Devesh Poddar, Advocatel appearing on behalf of the Assessee. Date of concluding the hearing : February 22, 2018 Date of pronouncing the order : February 28 , 2018 ORDER This is an appeal filed by the revenue directed against the order of CIT (Appeals) Jamshedpur dated 16.08.2016 for the assessment year 2009-10.

2.

The issue is whether interest u/s 234A and 234B is to be levied only on the total income disclosed by the assessee in the return of income or on the total income determined by the A.O. in the assessment order i.e. assessed income. The Hon’ble Jharkhand High Court in T.A. No. 38 of 2010 order dated 25th July, 2012 in the case of Ajay Prakash Verma vs. ITO, Dhanbad reported in 2013(1) TMI 140 has held that interest u/s 234A and 234B can be levied only on the income declared by the assessee in the return of income. The Hon’ble Jharkhand High Court in I.A. No. 5725 of 2014 in Civil Review No. 66

2 I.T.A. No. 2299/Ran/2016 A.Y. 2009-10 Ashok Agarwal of 2013 judgment dated 1st September, 2015 dismissed the civil review application filed by the department on this issue in this very case of Ajay Prakash Verma. Respectfully following the propositions of law laid down by the jurisdictional High Court, I direct the A.O. to levy interest u/s 234A and 234B only on the income returned by the assessee and not on the income assessed by the A.O.

3.

In the result, the appeal of the revenue is dismissed. Order Pronounced in the Open Court on 28th February, 2018.

Sd/- (J. Sudhakar Reddy) ACCOUNTANT MEMBER Dated: 28/02/2018 Biswajit, Sr. PS

Copy of order forwarded to: 1. Shri Ashok Agarwal, Mahato Para Road, Jugsalai, Jamshedpur – 831 001.

2.

ITO, Ward 1(5), 47, C.H. Area, Jamshedpur – 831 001.

3.

The CIT(A)

4.

The CIT

5.

DR True Copy, By order,

Sr. P.S. / H.O.O. ITAT, Ranchi

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